GDP measures the total market value of all final goods and services produced within a country in a given period. It includes transactions with monetary value, such as hiring someone to mow your lawn, taking clothes to the laundry, or hiring a taxi. However, it does not account for non-market transactions or the quality of the environment, such as air quality, which is why D is correct.

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GDP Ignores

Question 95

Multiple Choice

GDP ignores:

A) the value of mowing your lawn if you hired someone to do it.
B) the value of cleaning your clothes if you took them to the laundry.
C) the value of driving your kids to school if you hired a taxi to do it.
D) the value of the air quality in your neighbourhood.

Correct Answer: